FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Measuring the Macroeconomy

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

The price level can be derived as __________ and is called the __________.

A) Price level = Nominal GDP ÷ Real GDP;CPI
B) Price level = Nominal GDP $\times$ Real GDP;CPI
C) Price level = Real GDP $\times$ Nominal GDP;GDP deflator
D) Price level = Real GDP ÷ Nominal GDP;GDP deflator
E) Price level = Nominal GDP ÷ Real GDP;GDP deflator

F) C) and D)
G) A) and E)

Correct Answer

verified

Show Answer

Question 22

True/False

Review LaterAdd Note

Review Later

If the percent change in real GDP is found to be 4 percent using the Laspeyres index and 3 percent using the Paasche index,the chain-weighted price index will give us a growth rate of 3.5 percent.

A) True
B) False

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

By how much does the current GDP rise in the following scenario? A real estate agent sells a house for $250,000 that the previous owners had purchased 10 years earlier for $90,000.The real estate agent earns a commission of $10,000.

Which macroeconomic variables has the text not yet discussed in much detail?

Using the expenditure approach,investment includes

If NGDP is nominal GDP and P is the price level,which of the following can be used to calculate the growth of the real GDP?

In 2005,consumption expenditures accounted for about 70 percent of the total GDP.

Suppose we calculate the percent change in real GDP from year 1 to year 2 using both the Laspeyres and the Paasche indices.With the Laspeyres index we get 12 percent and with the Paasche index we get 9 percent.The chain-weighted growth of real GDP is:

If we calculate the real GDP using the __________ index,we use the __________ period's prices.

The National Income and Product Accounts allows us to relate __________ to __________ to __________.

The statistic used by economists to measure the value of economic output is:

Which macroeconomic variables has the text not yet discussed in much detail?

According to the expenditure approach,if Y is GDP,C is consumption,I is investment,G is government purchases,and NX is net exports,the national income identity can be written as:

-Consider Table 2.3.Using the Laspeyres index,the percent change in nominal GDP was about:

When you buy a car from your brother,which he bought new in 2000,the purchase adds to the current GDP.

You are a staff economist for your local bank and the bank manager claims that in 2008 the Chinese economy is bigger than in the United States.To prove him wrong you decide to put your economics training to work for you and decide to show him China's GDP in U.S.dollars,and to show him how smart you are,you also decide to calculate PPP GDP in China and compare that to the United States as well.You have the following data: In 2007 China's nominal GDP was 26.324 trillion ( = Chinese yuan);the yuan-dollar exchange rate was ¥7.35/$1;nominal GDP in the United States was $13.741 trillion;the price level in the United States was 1.00 and the price level in China was 0.32.How big is China's economy?

What are the components which make up the income approach to calculating GDP? What are the components which make up the expenditure approach to calculating GDP?

GDP often is used as a "measure" of economic welfare;it includes all factors that contribute to economic wellbeing.

To get an accurate view of how GDPs differ across countries,we simply need to convert all countries' GDPs into dollars using the prevailing exchange rate.

An economy's __________ is equal to its __________.